Spotlight

Indian equity markets are likely to remain cautious amid weak overnight cues from the U.S. and a broader technology-led sell-off that has spilled over into Asian markets. Japan’s Nikkei 225 has declined by more than 1%, while South Korea’s KOSPI is down over 3% in early trade, reflecting heightened risk aversion across regional markets.  

GIFT Nifty futures point to a mildly positive opening for Indian equities, although gains could prove difficult to sustain amid fragile global sentiment and persistent external risks. Investors are likely to remain cautious, with developments in overseas markets set to influence the direction of domestic benchmarks through the session.

Geopolitical tensions continue to cloud the outlook for global energy supplies, keeping uncertainty elevated across financial markets. WTI crude is trading near $99 a barrel, leaving India exposed to the risk of higher import costs and renewed inflationary pressures. A sustained rise in oil prices could also squeeze corporate margins and weigh on sentiment across energy-intensive sectors.

Meanwhile, elevated US Treasury yields remain a potential headwind for emerging markets, despite a recent pullback. Higher yields enhance the relative appeal of US assets and could constrain foreign portfolio flows into markets such as India, limiting the scope for a sustained recovery. Against this backdrop, domestic equities are likely to remain sensitive to global technology trends, crude oil movements and geopolitical developments, with the sustainability of any early gains hinging on a broader improvement in investor sentiment. 

Technical View

Nifty 50

The Nifty 50 continues to remain under pressure amid persistent selling, keeping the near-term outlook cautious. On the upside, the 22,800 level remains a key resistance zone. The index needs to reclaim and sustain above this level to improve its short-term outlook and potentially advance towards the psychological 23,000 mark.
 
On the downside, the 22,600–22,550 range serves as the immediate support zone. A sustained breakdown below 22,500 could intensify selling pressure and drag the index towards the 22,300–22,200 zone. The index is maintaining a cautious-to-bearish bias, with the near-term direction likely to depend on its ability to sustain above the 22,800 resistance zone while holding the immediate support around 22,600–22,550.

Bank Nifty

Bank Nifty continues to face resistance in the 55,000–55,200 zone, which needs to be decisively breached to strengthen recovery prospects. A sustained move above this range could pave the way for an advance towards the 55,600–55,800 zone.

On the downside, immediate support is placed at 54,600–54,400. A decisive break below this range could intensify selling pressure and drag the index towards the next support zone at 54,000. Bank Nifty is displaying a cautious outlook, with a sustained move above the immediate resistance zone required to establish stronger upward momentum, while a breach of key support levels could expose the index to further downside.